contract law(consideration) Flashcards
what is consideration
Consideration is essential
for a valid contract because
law requires a bargain and
not a gift This means that both parties to the contract must give something to each other by way of exchange.
case study for consideration
Currie v Misa (1875),
what are the 2 types of consideration
Executed consideration
Executory consideration
what is Executory consideration
a promise for a promise.
what is Executed consideration
an act in return for a promise
what are the principles of consideration
Consideration need not be adequate but must be sufficient
Past consideration is not good consideration
Consideration must move from the promisee
Performance of an existing duty
Part payment of a pre-existing debt
case study for Must be sufficient but need not be adequate
Thomas v Thomas (1842):
when will consideration be seen as adequate
As long as there is some value consideration will be adequate.
case study for Must be sufficient but need not be adequate (value)
Chappell v Nestlé [1960]
what does Sufficient means
that consideration must be real and have
some value.
case study for sufficent
White v Bluett [1853]
what is Past consideration is not good consideration
Past consideration is defined as something that is already done
at the time the agreement is made. Where consideration is past,
it has no value.
case study for Past consideration is not good consideration
Re McArdle [1951]
an exception to past consideration
when the promisor makes an
express or implied request for a particular task, and there must be an implied understanding that the task should be paid for.
case study for exception to past consideration
Re Casey’s patent (1982)
exceptions for past consideration
An express or implied request by the promisor to the
promisee to perform a task
An implied promise inherent in the request that the promisor
will pay the promisee a reasonable sum for performing the
task
The performance of the task, and
The payment of money
what does Consideration must move from the promisee mean
that a person cannot sue or
be sued under a contract unless they have provided consideration for it.
case study for Consideration must move from the promisee
Tweddle v Atkinson [1861]
what is Performance of an existing duty
A pre-existing duty is something that you are already legally required to
do. If someone just does what they were already bound to do, this is not good
consideration.
case study for Performance of an existing duty
Collins v Godefrey (1831):
Stilk v Myrick (1809):
when is Performance of an Existing Duty good consideration
if you do something extra
case study for good consideration
Hartley v Ponsonby [1857]
Part Payment of a Debt
Part payment of a debt is not good consideration. This rule arises from
the Pinnel’s case (1602)
case study for part payment of a debt
Foakes v Beer [1884]
Part Payment of a Debt: Exceptions
accepting something
other than money for the whole debt is good consideration even if it
is not of equal value
